It is amazing the parts of the body that are connected in
some way. For example, through research Medtronic has done, it has discovered that
patients on dialysis are more likely to develop arrhythmias. As a result,
Medtronic and DaVita Kidney Care, a division of DaVita Healthcare Partners,
have announced a new joint venture for the purpose of doing more research on
the correlated issues with a larger patient population. Together, Medtronic and
DaVita will develop a pilot program to identify cardiac arrhythmias in
end-stage renal disease patients using Medtonic’s Reveal LINQ™ Insertable
Cardiac Monitoring system. The research will help DaVita learn more about how to
improve the lives or ESRD patients and prevent cardiac episodes. This joint
venture is classified as an asymmetric alliance with the strategy of learning
from competitors.
Since DaVita and Medtronic do different things and occupy
different markets, there is no need to fear tacit collusion. There is also
little risk of either company moving into the other’s industry as competition
because their roles are so different. Their common factor is the patient itself
but not the role in the healthcare industry. In addition, because it is a pilot
program for the purpose of research, the project has a defined scope, and
likely, a timeline. There is little risk for a learning race because the
research must be completed to obtain credible results. The two companies appear
to be sharing duties well, as DaVita has the patients and the medical records,
while Medtronic is providing the device and the monitoring.
One strategy Medtronic may be using is managing uncertainty.
This venture is based on research and Medtronic needed a wider pool of
patients. Before releasing a new product on the market, or to gain credibility
for an existing product, Medtronic is doing the studies to verify the product’s
effectiveness. The study itself may be managing the risk of marketing the
product.
While most strategic alliances have to worry about the
possibility of cheating by one or both parties, joint ventures are the least
likely alliances to experience cheating because both parties are financially
invested and the venture is its own separate entity.
http://www.zacks.com/stock/news/154470/will-davita-kidney-care-gain-on-medtronic-collaboration
http://www.nephrologynews.com/articles/110548-davita-medtronic-to-collaborate-to-identify-cardiac-arrhythmias-in-patients-receiving-dialysis
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